The Kuwaiti Alshaya Group, which owns the rights to operate Starbucks cafes in the Middle East, has laid off more than 2,000 employees as it struggles with continuous boycotts of the company due to the Israel-Hamas conflict.
The layoff began on Sunday, March 3, amounting to about four percent of Alshaya’s total workforce of almost 50,000 people, Reuters reported.
In a statement, Alshaya said, “As a result of the continually challenging trading conditions over the last six months, we have taken the sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores.”
The company added it will support departing staff and remains committed to the region.
“Our thoughts are with the green apron partners who will be leaving, and we want to thank them for their contributions. Starbucks remains committed to working closely with AlShaya to drive long-term growth in this important region,” Starbucks spokesperson told Reuters.
Starbucks faces billions in losses and declining stock prices since October 7, 2023, due to boycott campaigns worldwide, particularly in Arab countries, for supporting Israeli aggression against the Gaza Strip.
Since October 7, Israeli aggression in Gaza has resulted in a humanitarian and health catastrophe, with more than 30,700 deaths, while international efforts aim to establish a ceasefire before Ramzan.
